COVID-19 Pandemic - A Chaotic Catalyst for Innovation and Entrepreneurship

Throughout the history of human evolution, crises have been fundamental in developing our societies. Wars have given birth to technological innovations; pandemics have aided advance healthcare systems; global financial and economic turmoils have helped pilot tech companies such as Airbnb and Uber. The ongoing coronavirus pandemic will potentially not be an exception; businesses can be anticipated to rise to the challenge.

Businesses, both large-scale as well as small, play a pivotal role in helping society get through adversity and in generating innovations that shape the post-crisis world. Not denying the strain that the pandemic has put on the shoulders of the business owners; however, there are reasons enough to remain hopeful; to witness the silver lining through the means of unique opportunities that the crisis has begun to throw open. As the world prepares to go back to the world that has changed for good, the time is to reset everything that we knew.

Startups that comprehend the new meaning of “normal” will take steps to bring out the best in themselves by identifying new customers, new markets, and new opportunities.

Building foundations

Keeping an optimistic point in consideration, India’s burgeoning startup ecosystem is showing signs of vigilance in terms of new ideas. We’re already witnessing major shifts in business practices. Facing external pressures, some leaders are stepping out of their comfort zones and routines to become creative problem-solvers. Along the way, many of them are rediscovering their entrepreneurial spirit.

CleanTech

Say, for instance, those involved in the cleaning services business. As COVID-19 cases continue to rise through the country, so is the demand for janitorial services. A large number of cleaning companies are seeing an increase in requests for services as people are being informed to constantly disinfect and clean all commonly-used spaces, offices, malls, departmental stores, and other facilities to prevent the coronavirus from spreading. Once the pandemic comes to a halt, there’s certainly going to be an immense demand for cleaning at a whole new level. Resultingly, in recent times, many new cleaning services startups are entering the market. They are offering what’s already present; but at a relatively affordable cost and with a faster turnaround.

HealthTech

Most critically, public safety and patient care have come to the forefront ever since the battle to contain the deadly virus begun. Naturally, the innovative health-tech industry is on the cusp of a major evolution. It is paving the way to solutions backed by biomedical engineering, artificial intelligence (AI), 3D printing, robotics, and nanotechnology. While the startups that sustained the pandemic are on an overdrive to suppress or lessen the spread of the infection, many giants like Microsoft are pulling out stops to identify innovative patient care solutions.

Reportedly, there are over 4800 health-tech startups in India. They are making use of cutting-edge technologies to aid the government to combat the pandemic. The biggest example is the ventilator manufacturers, Max Ventilators and Ethereal Machines. They have received support from the Telangana government to manufacture and deploy ventilators to the COVID wards and army. The extreme shortage of PPE in the country has pushed the health-tech startup, Karkhana.io to install injection moulding, 3D printing, machining, design facility, and fabrication to produce kits. This involves aerosol boxes, goggles, and face shields.

e-Commerce

E-commerce and online service platforms have played the most crucial role in times of distress as this by providing vital facilities in health, retail, finance, education, marketing, and agriculture. To speak of businesses pushing through adversity and not mentioning India’s largest food delivery platform – Zomato – would be an unfair play. Ever since the country underwent a strict lockdown, the food delivery giant saw a significant decline in business, owing to the fear that people had for food hygiene. While it ensured putting in place effective measures to protect the safety of its clients, the brand also saw a great opportunity.

Sooner than expected, Zomato expanded its offerings. They launched the essential and grocery delivery service – Zomato Market – in 185 cities in India. In fact, they are about to set their foot in the Lebanon and UAE markets.

Similarly, Curefit – a fitness startup – had to change their approach. They conducted online classes since its centres and gyms shut. They have now introduced paid subscription packages for those who want to join their virtual classes. One thing is certain, e-commerce will never look back and all the more niche opportunities are likely to surface.

Continuing Investments

It’s no wonder that some of the most renowned names in the investor’s circle, such as Steadview Capital, has reported having invested heavily in Indian enterprises, despite the present stressful conditions. Enough and more has been written about the massive investments made in Reliance Jio; or other investments made by VCs and PEs in young FMCG startups/players. Plus, to ensure that businesses, as well as the economy, thrive and springs back to its feet, the policymakers have been emphasizing on developing various action plans and strategies.

Additionally, the government’s flagship Startup India initiative has established a competition for budding companies. Innovators are contributing creative solutions to counter the pandemic crisis. Thus, the need of the hour is for small businesses and startups to swiftly adapt the changes. They need to grab the opportunities that the pandemic has offered. And whilst doing so, the owners of these companies must consider the idea of going slow. Yet they need to keep strong, their cash reserves tight, and make tough decisions, as the situation commands.

The most common question is whether or not we will witness the “normal” days of the pre-COVID era. The clock doesn’t seem to reverse at all. However, the crisis will usher in a “new normal”. It will spawn some great startups and a host of brand-new services and products. If we look back over the downturns and recessions that have taken place, we’ll realize the most amazing companies came to life at such times.

About the Author

Sanjay Dangi

Sanjay Dangi is the Founder of Mentor Capital Ltd; Financial investor to many startups. A Chartered Accountant and Company Secretary, Sanjay is a first-generation entrepreneur. He has experience of more than 25 years in the field of Project Financing, Loan Syndication, and Investments.